889 IMPLEMENTATION SECTION Section 889 (Prohibition on ...

RECOHMOMWENDDOEIDCCOOMNPTRLYA?CTOR

COMPLIANCE ACTIONS

WAIVER PROCESS

SECTION

889

IMPLEMENTATION

Section 889 ("Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment") is part of the Fiscal Year 2019 National Defense Authorization Act (NDAA). There are two prohibitions in the legislation, Part A and Part B.

*No impact until new contract/lease awarded or modification issued to extend period of performance or exercise option, except for IDVs

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5. Representation. Provide representation re use

For moarendeataleilrst sGeoevtehrenFmARen(FtAifRu5s2e.2is04d-2is4caonvderFeAdR 52.204d-2u6r)inagndcaonFtArRacret ppoerrtfinogrmclaanuscee.(FAR 52.204-25).

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See GSIAnf8o8r9mQauteiosntio. DnsevaendloApnaswpehrass(eQ-&oAu)t plan and provide waiver information to the Government along with the complete laydown of the presence of the covered telecommunications equipment or services.

For more details see the FAR representation (52.204-24, 52.204-26) and FAR reporting (52.204-25) requirements.

For Details on the Recommended Compliance Steps: See the FEDERAL REGISTER

Each agency must designate a senior agency official for Supply Chain Risk Management and participate in the Federal Acquisition Security Council's (FASC) information-sharing environment. Each waiver must include:

A compelling justification for additional time needed

A full and complete laydown of covered telecom

A phase-out plan to eliminate the covered telecom

Agencies must consult with Office of the Director of National Intelligence (ODNI) and confirm that ODNI does not have information suggesting the waiver would present a material increase in risk to U.S. national security.

Agencies must also give a 15-day advance notification of waiver to the FASC and ODNI.

Agencies must notify Congress within 30 days of issuance of a waiver and must include:

Requesting agency's attestation that granting waiver will not present a material increase in risk to U.S. national security

Full and complete laydown of covered telecom equipment in the waived entity's supply chain, including a description of each category of technology equipment or service

Required phase-out plan

TO SUBMIT COMMENTS TO THE FAR RULE

1. Go to 2. Search for "FAR Case 2019-009" 3. Select corresponding "Comment Now" link and

follow instructions

Why are these changes important?

U.S. foreign adversaries are using increasingly sophisticated methods such as supply chain and cyber operations to gain access to critical infrastructure and steal sensitive information

The increasing reliance on foreign owned or controlled telecommunications equipment, may create vulnerabilities in U.S. Supply chains

China is increasingly asserting itself by stealing U.S. technology and intellectual property to erode U.S. economic and military superiority.

Chinese companies, including the companies identified in the FAR rule, are legally required to cooperate with their intelligence services. China's reputation for close collaboration between its government and industry to amass technological secrets presents additional threats to U.S. Government contractors.

The FAR rule ensures contractors keep national security interests in mind by ensuring that they do not use certain equipment and services that Congress has determined may present national security concerns.

*No impact until new contract/lease awarded or modification issued to extend period of performance or exercise option, except for IDVs

Part A - The Government Cannot Obtain Prohibited Telecom

Part A became effective on August 13, 2019.

Part A prohibits the government from obtaining (through a contract or other instrument) certain telecommunications equipment (including video surveillance equipment) or services produced by the following covered entities and their subsidiaries and affiliates:

Huawei Technologies Company ZTE Corporation Hytera Communications Corporation Hangzhou Hikvision Digital

Technology Company

Dahua Technology Company

The Department of Defense has the authority to add additional companies to this list.

Part A has been added to the Federal Acquisition Regulation (FAR) at FAR subpart 4.21.

Note that the Part A ban also applies to commercial items (FAR 12.301(d)(6)) and micro-purchases (FAR 13.201(j)).

Have questions about GSA's implementation of Section 889? See GSA's 889 Part A Q&As

Part B - Government Contractors Cannot Use Prohibited Telecom

Part B is effective August 13, 2020.

Part B prohibits the government from contracting with any entity that uses certain telecommunications equipment or services produced by the entities listed in the statute.

The Government cannot contract with an entity that uses covered telecommunications equipment or services as a substantial or essential component of any system or as critical technology as part of any system.

Prohibition applies regardless of whether or not that usage is in performance of work under a Federal contract.

The prohibition applies to every sector and every dollar amount. Your ability to enter into contracts with the Government will be impacted by Part B.

After conducting a reasonable inquiry, entities will represent whether they do or do not use prohibited telecommunications equipment or services.

Part B has been added to the Federal Acquisition Regulation (FAR) at FAR subpart 4.21.

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